2 ms·
I think that's mostly true, but there's some other factors that are pretty significant: - Down payments are pretty hard to come up with on a $1m property - A
by camgunz 5y ago
I think that's mostly true, but there's some other factors that are pretty significant:
- Down payments are pretty hard to come up with on a $1m property
- A lot of the time you're competing with developers willing to pay cash
Both of these things are very true here in DC's housing market, and I've heard similar things from friends in other more-or-less-urban/near-suburban places.
- sicp-enjoyer 5y ago> Down payments are pretty hard to come up with on a $1m property I agree, it does create some kind of ceiling. > A lot of the time you're competing with developers willing to pay cash I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed.
- camgunz 5y ago> I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed. Oh yep, I totally buy this.